SOLUTION: Ricky and Krystal have a new grandson. How much money should they invest now so that he will have $63,000 for his college education in 18 years? The money is invested at 5.6% compo
Algebra.Com
Question 1146229: Ricky and Krystal have a new grandson. How much money should they invest now so that he will have $63,000 for his college education in 18 years? The money is invested at 5.6% compounded quarterly.
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
P=Po(1+r/n)^nt
63000=Po(1+.056/4)^72, since there will be 72 quarters in 18 years
63000=Po(1.014^72)
Po=63000/2.72 round at end
=$23153.03
RELATED QUESTIONS
Omar and Krystal have a new grandson. How much money should they invest now so that he... (answered by MathTherapy)
Shaun and Rebecca have a new grandson. How much money should they invest now so that he... (answered by ankor@dixie-net.com)
Frank and Alexandria have a new grandson. How much money should they invest now so that... (answered by josgarithmetic)
Shaun and Rebecca have a new grandson. How much money should they invest now so that he... (answered by ikleyn)
David and Nicole have a new grandson. How much money should they invest now so that he... (answered by mananth)
Matt and Anna have a new grandson. How much money should they invest now so that he will... (answered by ankor@dixie-net.com)
My teacher didn't give me any formulas for these things.. please help me!! T~T
1. You (answered by KMST)
The parents of a child have just come into large inheritance and wish to establish a... (answered by scott8148)
A group of workers won the lottery and will each walk away with $10 000. Fred, one of the (answered by jim_thompson5910,addingup)